Traders work on the floor of the New York Stock Exchange. <\/p>\n
NYSE<\/p>\n
Stock futures jumped on Monday after U.S. and China officials cooled tensions over the weekend, laying the groundwork for President Donald Trump and China President Xi Jinping to clinch a trade deal this week.<\/p>\n
Dow Jones Industrial Average<\/a> futures added 261 points, or 0.6%. S&P 500 futures<\/a> climbed 0.8% and Nasdaq 100 futures<\/a> were up 1.2% with chip stocks like Nvidia leading the way in early trading.<\/p>\n “I think we have a very successful framework for the leaders to discuss on Thursday,” said Treasury Secretary Scott Bessent from the ASEAN Summit in Kuala Lumpur.<\/p>\n This framework potentially includes<\/a> a delay of China’s rare earths restrictions that caused the latest trade flare-up, a spiking of Trump’s threatened 100% tariffs on China that were to start Nov. 1 and a resumption of Chinese purchases of soybeans. The agreement may include a resolution of the TikTok dispute with the U.S. getting a deal for the U.S. version of the social video app.<\/p>\n “I have a lot of respect for President Xi, and we are going to come away with the deal,” Trump said<\/a> on Monday from Air Force One.<\/p>\n Chipmakers, the sector with the most to lose from tensions with China, led the rally in early trading Monday. Nvidia, Broadcom and AMD each gained about 2%. Tesla and Apple added around 1% each.<\/p>\n “Details are still limited, and nothing will be finalized until the Trump-Xi meeting, but a renewed truce now seems near-certain, with China likely fully delaying their rare earth export controls for a year\u2014better than the alternative of an agreement to grant licenses,” said Tobin Marcus of Wolf Research in a note. “This overall better-than-expected outcome should be bullish for markets this week, assuming the Trump-Xi meeting goes well.”<\/p>\n Stocks are coming off a bullish week, with all three major indices hitting record highs<\/a> last Friday. The\u00a0Dow Jones Industrial Average<\/a>\u00a0posted its first-ever close above the 47,000 mark. The\u00a0S&P 500<\/a>\u00a0touched 6,800 for the first time ever Friday. All three major benchmarks posted their second week in a row of gains.<\/p>\n Investors expect the Federal Reserve to slash rates on Wednesday, particularly after the Bureau of Labor Statistics released slightly cooler-than-expected inflation data<\/a> last week. Big Tech companies’ upcoming earnings reports are also on tap. Several “Magnificent 7” stocks, including Alphabet<\/a>,\u00a0Amazon<\/a>,\u00a0Apple<\/a>,\u00a0Meta Platforms<\/a> and\u00a0Microsoft<\/a>, will release their third-quarter results this week.<\/p>\n